microlinks.org/MPEPseries Bill Grant Development Alternatives Incorporated Marina Krivoshlykova Development Alternatives Incorporated May 8, 2014 Facilitation: How Much Does Context Matter? Overview • Facilitating adoption and crowding-in – Bay Area (Dead Show): No facilitation necessary – Rural Cambodia (USAID MSME): A light touch does the trick • Other market contexts: When light touch isn’t enough • Cases of intermediate & “heavy hand” engagement – Niger Delta (Chevron PIND/MADE) – Northern Mozambique (SDC InovAgro) • Conclusions – A framework to match your approach to your context How a Change Process Starts How Systems Change: The Adoption Process Speed or pace by which system players adopt new ideas Innovators Early Adopters Early Majority Late Majority Laggards SLOW FAST Innovators: High risk fits easily in comfort zone Early Adopters: Comfortable taking risk on new idea provided adoption preserves their status as “opinion leader” in community. Early Majority: Waits for others to adopt/benefit to be in comfort zone. Late Majority: Skeptics w/discomfort to adopt unless majority have done so. Laggards: Tradition bound w/ high degree of discomfort to adopt new ideas. Cambodia MSME “light touch” facilitation • Constraints in swine VC: low productivity due to high mortality, – poor quality inputs, lack of knowledge, low investment • MSME facilitation strategy: – – – – Identify early adopters - the “leading few” enterprises and individuals Informal interest groups to discuss common problems Identify market actors with the right incentives and then facilitate relationships - input suppliers provide technical training Client participation based on value proposition and selfselection - no subsidies used Swine Value Chain Results • Crowding in and results: – Leading farmers invest own funds to upgrade – Copycat behavior – the leading few copied by others – Crowding in of input suppliers: 14 provide embedded training without project support; 85 more serve the VC – Increased productivity: reduced mortality (50% -> 10%) – Increased farm size and profitability (2 pigs -> 46) – Increased number of swine farmers (few hundred - >4000) – Stronger horizontal relationships between farmers Context for Intervention Design Weak Market Context Strong Market Context Context for Intervention Design Strong Market Context Weak Market Context • • • • Economic/purchasing power Population density Political Economy Presence/dynamism of interconnected systems, service providers • Linkages to end markets • Social Cohesion Context for Intervention Design Weak Market Context Very Weak Market Context • • • • Emerging Market Context Stronger Market context Economic/purchasing power Population density Political Economy Presence/dynamism of interconnected systems, service providers • Linkages to end markets • Social Cohesion Strong Market Context Context for Intervention Design Weak Market Context Very Weak Market Context Emerging Market Context External/Heavier Hand Invest time in analysis/building relationships Invest more money to buy down risk, elicit interest More functions need to be addressed Need to work on both supply and demand side More thoughtful engagement Stronger Market context Internal/Lighter Touch Understand the context Identify potential lead partners Stronger supporting systems Present value Proposition Low financial investment More rapid engagement from other market actors – crowding in Strong Market Context Partnership Initiative for the Niger Delta Partnership Initiative for the Niger Delta Demo Pond for Increased Productivity BMO UUFFA: Organize, coordinate, finance Specialist consultant Dr Arthur Okoro Curriculum, training supervision Partnership Initiative for Niger Delta Feed companies Vital Feed, Rannan Feed Provide free feed Hatchery Brafin farms Supply fingerlings Demo Pond Scale-up Model PIND Facilitate, TOT, M&E Feed Companies Demo Pond Scale-up Model BMO/Lead Farmer Smoking Kiln Manufacturers Training sites Financial Institutions PIND Facilitate, TOT, M&E Other Donors Feed Companies Fisheries Extension Service Hatchery Consultant Supply fingerlings TOT and Supervision Private Consultants Outgrower scheme King Frango Hatchery Service markets Grants Advice African Century (ACAM) Guarantee Advice Soya to Silo Purchasing and Collection Advice Farmer Groups (~20 farmers each) Credit Inputs Extension Group Organization Equipment Breeder Seed Equipment Business model/to ols prototypes Building Market for Certified Seed NGO MFI Finance Year 1 Import ACAM Farmers Year 2 3 Seed Companies Local Production ACAM Farmers Guarantee Year 3 Direct Sales 1 Seed Company Farmers Guarantee ACAM CAL Other Conclusions on Context • Must start with a vision of market system and the exit strategy in mind • Context: Each value chain has a unique context - no copy and paste – Without basic market conditions, facilitation may not be right • Style of engagement depends on the range of factors – – – – Existing infrastructure/organization Lead firms, interconnected systems, and farmers/beneficiaries Appetite for change Clarity of value propositions and potential for mutual benefits • Very weak market system context requires much more time and investment (higher threshold for failure) – Emphasis on quick numbers may crowd out sustainable systems Thank you for joining us! Share Feedback Please take a minute to fill out our brief survey! You can also visit the event page to post comments & questions. Stay In Touch Bill Grant: [email protected] Marina Krivoshlykova: [email protected] om Contact Us: [email protected] Subscribe today: Upcoming Events May 29: Workforce Development and Inclusive Markets Find upcoming events & past presentations: microlinks.org/MPEPseries microlinks.kdid.org/subscribe Microlinks and the MPEP Seminar Series are products of the USAID Microenterprise and Private Enterprise Promotion Office under the Feed the Future Knowledge-Driven Agricultural Development (KDAD) project.